Mill City Announces $450M Offering to Establish Sui Treasury

In a bold move that highlights the growing fusion of traditional finance and blockchain, Mill City Ventures III, a specialty finance business company, has announced a $450 million private placement to establish a Sui-based crypto treasury strategy.

This initiative positions Mill City strategically to leverage Sui’s speed, scalability, and security in powering next-generation decentralized applications.

Mill City Eyes SUI Treasury Strategy

The company intends to use 98% of the net proceeds to acquire SUI, establishing it as its primary treasury reserve asset. The remaining 2% will be used to fund the company’s short-term lending business.

The private placement is led by Karatage Opportunities, a London-based hedge fund specializing in digital assets, and the Sui Foundation. Other notable participants include Galaxy Digital, Pantera Capital, Electric Capital, GSR, Protagonist, Arrington Capital, and dao5.

As part of the strategic shift, Marius Barnett, co-founder of Karatage, will assume the role of Chairman of the Board. Stephen Mackintosh, also a co-founder of Karatage, will become Chief Investment Officer. Their leadership is expected to steer Mill City’s integration of blockchain technology into its financial operations.

“We believe that Sui is well-positioned for mass adoption with the speed and efficiency institutions require for crypto at scale, plus the technical architecture capable of supporting AI workloads while maintaining security and decentralisation,” Stephen Mackintosh stated.

The private placement is expected to close around July 31, 2025, subject to customary closing conditions. Once the funding is secured, Mill City plans to acquire SUI through a mix of open-market purchases and institutional-grade deal flow. It will also secure SUI via a negotiated agreement with the Sui Foundation.

Furthermore, Mill City will collaborate closely with the Sui Foundation to exchange updates on platform technology and ecosystem development. This partnership positions the firm as one of the few publicly traded companies operating a foundation-supported crypto treasury strategy.

Market Reaction

The announcement has been met with enthusiasm from investors, with Mill City’s stock experiencing a significant 14% surge following the news. This positive market reaction reflects growing investor confidence in the integration of blockchain technology into traditional financial models.

However, the market price of SUI has not yet responded positively to this development. At the time of writing, the token changes hands at $4.00, representing a 7.8% decline in the last 24 hours.